<p>Improving the quality of public services (PS) is essential for addressing societal issues and fulfilling the everyday needs of residents. In this context, the creation of National Ecotourism Demonstration Zones (NEDZs) presents a potentially influential policy tool. This study examines the causal impact of establishing NEDZs on the provision of PS, using panel data from Chinese counties between 2007 and 2021 and employing a multi-period difference-in-differences (DID) method. The findings reveal that the implementation of NEDZs significantly enhances the overall availability of PS, with these results remaining consistent across various sensitivity tests. The mechanisms contributing to this improvement include increased fiscal revenues, growth in the tertiary sector, and better infrastructure development. The heterogeneity analysis indicates that the policy’s effects are more pronounced in central and non-border regions, as well as in counties introduced later in the program. Additionally, by integrating county-level data with the China Family Panel Studies (CFPS) data from 2012, 2014, 2016, 2018, and 2020, the study shows that the NEDZ policy significantly improves citizen satisfaction with education and healthcare services. This research underscores the wider social benefits of ecotourism policies, demonstrating their positive impacts not only on environmental and economic outcomes but also on the enhancement of PS, citizen well-being, and social equity. These insights are valuable for shaping regional development strategies and public policies focused on sustainable tourism.</p>